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[General] L5M5 Cert Exam, L5M5 Sample Test Online

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【General】 L5M5 Cert Exam, L5M5 Sample Test Online

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q27-Q32):NEW QUESTION # 27
GlobalPharm Ltd, a pharmaceutical company, has engaged a third-party auditor to assess its compliance with regulatory standards. During the audit, the company identifies potential risks. What is the most significant challenge GlobalPharm Ltd might face when working with a third-party auditor?
  • A. Reputational damage if non-compliance issues are exposed
  • B. Reduced decision-making authority within management
  • C. Loss of operational control over manufacturing processes
  • D. Lack of independence in the auditor's recommendations
Answer: A
Explanation:
Choice B- Reputational damage is a critical concern, as non-compliance findings could harm stakeholder trust, regulatory relationships, and the company's public image.
Incorrect answer:
Choice A- The company retains control over operations; auditors only provide assessments.
Choice C- Audits do not reduce management's decision-making authority.
Choice D- Certified auditors are expected to maintain independence.
Reference:
LO-2.3; Page 217-218; Challenges with third party auditors

NEW QUESTION # 28
Marge is reading a government-issued statement which helps a company decide which course of action to take but is not legally binding. What type of document is Marge reading?
  • A. Directive
  • B. Guideline
  • C. Regulation
  • D. Statute
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.185) explains the distinction between regulatory documents. Guidelines are advisory documents providing best practice but are not legally binding. Regulations and statutes (A and C) are legally binding, and directives (B) are binding once incorporated into national legislation. Procurement professionals must be able to differentiate between binding legislation and advisory guidelines to ensure compliance. While guidelines help shape ethical practices, failure to follow them usually does not carry legal penalties.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.185

NEW QUESTION # 29
A homeowner planning to purchase a new air conditioner notices an energy rating label on each model. This rating scheme provides details on the unit's energy efficiency, cooling capacity, and environmental impact. How does this information assist the buyer in making a decision?
  • A. It provides clear information on energy efficiency and expected electricity consumption
  • B. It guarantees that the air conditioner will last for a specific number of years
  • C. It ensures that all air conditioners have the same level of performance
  • D. It ensures that the most expensive air conditioner is always the best choice
Answer: A
Explanation:
Choice B - A rating scheme (such as an Energy Star rating or SEER rating) helps buyers understand how much electricity an air conditioner will use. This allows them to choose a model that is cost-effective and environmentally friendly. This is the correct answer Incorrect answer:
Choice A - Incorrect - A rating scheme does not make all air conditioners equal in performance. Instead, it helps buyers compare different models based on efficiency, cooling capacity, and energy consumption. Air conditioners may vary in technology, features, and effectiveness.
Choice C - A rating scheme does not indicate product lifespan. Durability depends on factors like brand, usage, maintenance, and build quality, which are not necessarily covered by the rating system.
Choice D- A higher price does not always mean better efficiency. Some expensive models may have extra features but still consume more energy. A rating scheme helps buyers focus on energy savings and performance rather than just cost.
Reference:
LO-3.2; Page 287; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards

NEW QUESTION # 30
Vincent is a Procurement Manager in France. His company is considering joining the EU's EMAS system (Eco-Management and Audit Scheme). Which of the following are advantages of doing this? Select THREE
  • A. There is no cost to set up
  • B. It will benefit the company's reputation
  • C. It focuses the organisation on improving environmental performance
  • D. It allows the organisation to prove compliance with environmental legislation
  • E. It will increase profits
Answer: B,C,D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The Eco-Management and Audit Scheme (EMAS) is a voluntary EU framework that supports organisations in improving environmental performance. The L5M5 study guide (p.279) explains that EMAS helps organisations by:
Focusing on continuous environmental performance improvement (A),
Allowing proof of compliance with environmental legislation (C),
Enhancing reputation and stakeholder trust (D).
However, it does not guarantee increased profits (B), and there are costs for audits and registration (E). EMAS can give organisations a competitive advantage by demonstrating environmental responsibility. For procurement, it helps in supplier evaluation, especially within the EU.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.279

NEW QUESTION # 31
Porter's concept of "Creating Shared Value" combines CSR with what other action?
  • A. Philanthropy
  • B. Economics
  • C. Marketing
  • D. Philosophy
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Porter's Creating Shared Value (CSV) concept integrates Corporate Social Responsibility (CSR) with philanthropy (B), meaning that companies can generate economic value while simultaneously creating social value for communities. The L5M5 study guide stresses that businesses can strengthen competitiveness while advancing social and economic conditions where they operate. Unlike traditional philanthropy, CSV embeds social impact into core business strategy rather than being a peripheral activity. Procurement professionals can apply this by selecting suppliers who deliver both economic efficiency and community benefits.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on CSR and shared value

NEW QUESTION # 32
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